LISI GROUP - Integrated report 2020

Corporate officer managers’ remuneration For several years already, LISI has implemented a three-part remuneration policy for the Group’s executive officers: • Fixed annual remuneration that is subject to regular benchmarking. • Variable annual remuneration linked to financial and extra-financial criteria. • A long-term incentive scheme in the form of an allocation of shares subject to performance conditions, linked to the creation of value: the RNA (Revalued Net Assets). This policy is applied throughout the Group with a structure and ratios adapted to the different levels of management responsibility. Chairman of the Board’s remuneration Not being one of the executive officers, the Chairman of the Board of Directors has only received, since January 1, 2019, remuneration in the form of attendance fees in his capacity as Chairman of the Board of Directors and member of the Committees. He receives no other compensation. Executive officer managers’ remuneration The Chief Executive Officer and the Deputy Chief Executive Officer receive remuneration according to the structure described opposite. It should be noted that the annual variable part and the part subject to performance conditions prevail in the budgeted remuneration. In 2021, the Board of Directors, on a proposal from the Compensation Committee, introduced for the first time CSR criteria in the annual variable remuneration of executive directors. Fairness ratios In 2020, on French territory, the fairness ratios between the level of remuneration of executive corporate officers (Chairman of the Board, Chief Executive Officer and Deputy Chief Executive Officer) and average employee remuneration amounted respectively to 1.5 / 14.4 / 12.2. Gender equality index In 2020, all LISI Group sites obtained a score above 75% on the professional equality index between women and men relating to pay differentials. At LISI, remuneration is closely linked to the performance of the company and to collective and individual achievements. The remuneration system is designed to reconcile recognition of individual performance and the search for internal fairness, while taking into account the local economic environment. THE REMUNERATIONPOLICY 4 _ IMPLEMENTATION